in your experience in trading stocks, which MOMENTUM INDICATOR do you find works best and with which parameters. Do I ever need to adjust the parameters ? say when I look at diferent time frame - daily chart / weekly chart ?
and one question - in your opinion the best /favorite oscillator to try and identify cylcle lows and highs. and it's parameters ok so we are looking at 1. best momentum inducator and 2. facorite oscillator your advice would be higly appreciated.
Hello CPS thanks for the reply At the moment- for momentum indicator- I am trying to use DMI - but I am not exactly sure if I am reading it correctly . and as for oscillators - it's the RSI and/or Stochastics - but I do not have the parameters sorted out as yet. and what I have learned is that before one trades one should try and get confirmation on longer term charts , - say weekly charts, that's why I am asking about the parameters and if they need to change .
Oss will depend on What time frame are you wanting to trade over? ROC is easiest for momentum (DMI very complex if you not sure what to look for). How much experience do you have trading and what are you wanting to trade? SSF, CFD, Warrants Stocks, Instalments etc?
I will usually be in a trade for a month or so - so not a long term investment strategy ... experience - it's been a while - but cannot say that the more experience - the more knowlegable I became , I really want to do it right from now on- so I deciced to keep a log book of all my trades and - and trades I did not take - - and see if I can learn from my mistakes. curently trading in shares only ... thanks for the momentum idicator advice - the roc - currently the paramiter is at 21 - should I keep it there or adjust - I am looking at daily charts of say oml and kio, any advice on the oscillators ?
Marzena, there is no "holy grail". Whichever indicator you use will fail at some point - period. Learn to manage the trade. Read at least one market related book a month. Educate yourself and stop looking for the easy route.
Marzena,good move trading in shares for now-no time decay.Stay away from warrants until you know what you are doing.With the combination of spread,costs and time decay warrants will wipe you out unless you are experienced.Probably similar for other derivatives,but I chose warrants as my weapon of self-destruction!The only problem is that more capital is required to make decent profits with shares,but it's a good place to learn,and if you have enough capital even better.
Well seeing you only doing monthly trades (or there abouts the standard periods will be OK, however as mentioned by others "no holy grail" and maybe testing (back testing) with different settings will help you develop your own system and results. After all no-one here can tell you what to do as only you know what you want and how you want it. Risk, personal choice, emotional awareness, why you choose KIO over OML or the other way etc. Great advise reading market reports and probably a good trading book. trading In the Zone - Mark Douglas and trade you way to financial freedon - van K Tharp are usual best choices here. Many others but those usually top the charts.